Amid uncertain political and economic situation at international and local levels, foreign investors remained very cautious in investing in Pakistan depicting low inflows of $58.9 million in foreign direct investment (FDI) in July 2022.
According to the financial results, foreign direct investment stood at $103.8 million in the same month of the last financial year, showing a staggering difference of $45 million this year.
FDI from UAE remains the highest with $12.2 million, followed by Switzerland with $11.5 million and Germany with $6.5 million.
The power sector attracted the single largest foreign investment worth $30 million in July followed by the financial business sector which received a net investment worth $27 million during the month.
The foreign portfolio investment (FPI) during the period showed a mixed trend. Investment in debt securities showed outflows of $17.7 million during the first month of the financial year whereas the investment in equity securities showed inflows of $3.7 million.
The overall investment in the country including FDI and FPI decreased to $44.9 million in July as compared to 1.1 billion, showing a massive decline of 95 percent or $1.05 billion in inflows.
However, it is to be noted that during the last month of the previous fiscal year, June 2022, Foreign direct investment (FDI) into the country witnessed 20-month high inflows of $271.1 million despite political uncertainties. According to the State Bank of Pakistan (SBP), FDI in June 2022 was 92 percent higher compared to $141.2 million in the prior month of May 2022 and compared to $141.3 million in June 2021.
